Despite the recent slowdown in global cement consumption, the region still is expected to grow by nearly 5% over the next five years, thanks to a boost in housing demand. The East South Central census division is expected to experience positive demand growth, and new construction will continue to grow despite concerns over affordability. The state of the oil and gas sector in Alabama is also expected to support growth, especially since prices are projected to rise back up from their lows in 2020. In Kentucky, the manufacturing industry and logistics and distribution sectors are likely to be the main drivers of growth, as the economy is expected to expand by 7.6% in 2022 and 1.9% in 2021.
The growth in urbanization is driven by increasing career opportunities and a better quality of life. Meanwhile, government initiatives will continue to increase the consumption of cement globally. In China, the industry is dominated by China, which will see a substantial expansion of construction activities. The country is also expected to remain the largest consumer and producer of cement. With growing demand and increased demand for precast products, the size of the market will increase.
The pandemic has changed the relationship between cement producers and their customers. Companies rely on remote communication, which may bring them closer to their customers. The absence of physical contact allows them to meet more often and have more frequent communication. However, the lack of face-to-face meetings means that companies must spend more on preplanning. They can better anticipate the market demand for cement in the future and make the necessary adjustments.